Gregory Viscusi, Helene Fouquet and Mark Deen
July 5, 2012
France’s two-week-old Socialist government unveiled 7.2 billion euros ($9 billion) of tax increases to meet deficit-reduction goals and avoid bond-market punishment.
The 2012 measures, approved at a Cabinet meeting today, presage even larger tax increases and spending cuts next year in an economy that’s barely expanding.
“We face an extremely difficult financial and economic situation,” Finance Minister Pierre Moscovici said at a press conference today in Paris. “The wealthiest households, the big companies, will be asked to contribute. In 2012 and 2013, the effort will be particularly large.”